Which of the following statements is true about the Great Depression?
A) The fall in aggregate demand at the start of the Great Depression began with the collapse consumption because of the decrease in incomes, following the stock market crash of 1929.
B) The fall in the short-run aggregate supply at the start of the Great Depression began with the collapse in investment.
C) The fall in aggregate demand at the start of the Great Depression began with the collapse in investment.
D) The fall in the short-run aggregate supply at the start of the Great Depression began with the collapse in exports because of the passage of Smoot-Hawley Tariff Act of 1930 which raised tariffs on imported goods.

Question

Quizplus · Accepted Answer

The Great Depression's onset was marked by a significant fall in aggregate demand, primarily due to a collapse in investment following the stock market crash of 1929.

Which of the Following Statements Is True About the Great